HLS 10RS-1313 ORIGINAL
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are additions.
Regular Session, 2010
HOUSE BILL NO. 338
BY REPRESENTATIVE MONICA
INSURANCE COMMISSIONER: Provides relative to regulation of home service contract
providers by the commissioner of insurance
AN ACT1
To amend and reenact R.S. 22:1806.2(4) and (7) and 1806.3(G) and to enact R.S.2
22:1806.1(B)(4), relative to regulation of home service contract providers by the3
commissioner of insurance; to provide for definitions; to provide for exemptions; and4
to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 22:1806.2(4) and (7) and 1806.3(G) are hereby amended and7
reenacted and R.S. 22:1806.1(B)(4) is hereby enacted to read as follows: 8
§1806.1. Scope and purpose9
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B. The following shall be exempt from this Part:11
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(4) Contracts sold or offered for sale on a single item of property at the time13
of the sale of the property or within one year of the date of the sale which guarantees14
the performance of the service, repair, replacement, or maintenance of the property15
or guarantees to indemnify for the service, repair, replacement, or maintenance of a16
single item of residential property.17
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§1806.2. Definitions1
As used in this Part:2
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(4) "Home service contract" means a contract or agreement for a separately4
stated consideration for a specific duration to perform the service, repair,5
replacement, or maintenance of property installed at a specific residential address or6
indemnification for service, repair, replacement, or maintenance, for the operational7
or structural failure of any residential property due to a defect in materials,8
workmanship, inherent defect, or normal wear and tear, with or without additional9
provisions for incidental payment or indemnity under limited circumstances. 10
property installed at a specific residential address. Home service contracts may11
provide for the service, repair, replacement, or maintenance of property installed at12
a specific residential address for damage resulting from power surges or interruption13
and accidental damage from handling and may provide for leak or repair coverage14
to house roofing systems. Home service contracts are not insurance in this state or15
otherwise regulated under any provision of this Louisiana Insurance Code, except as16
provided in this Part.17
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(7) "Provider" means a person who administers, issues, makes, provides,19
sells, or offers to sell a home service contract or who is contractually obligated to20
provide service the services or to provide indemnification under a home service21
contract. such as sellers, administrators, and other intermediaries.22
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§1806.3. Requirements for doing business24
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G. Except for the registration requirements of this Section, providers and26
related home service contract sellers, administrators, and other persons marketing,27
selling, or offering to sell of home service contracts are exempt from any licensing28 HLS 10RS-1313 ORIGINAL
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requirements of this state and shall not be subject to other registration information1
or security requirements.2
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Monica HB No. 338
Abstract: Provides relative to regulation of home service contract providers by the
commissioner of insurance, including definitions and exemptions.
Present law generally requires home service contract providers to register with the
commissioner of insurance.
Proposed law changes such regulation by the commissioner, as follows:
(1)Present law defines a "home service contract" as a contract or agreement for a
separately stated consideration for a specific duration to perform the service, repair,
replacement, or maintenance of property or indemnification for service, repair,
replacement, or maintenance, for the operational or structural failure of any
residential property due to a defect in materials, workmanship, inherent defect, or
normal wear and tear, with or without additional provisions for incidental payment
or indemnity under limited circumstances. Further provides that home service
contracts may provide for the service, repair, replacement, or maintenance of
property for damage resulting from power surges or interruption and accidental
damage from handling, and may provide for leak or repair coverage to house roofing
systems.
Proposed law limits a "home service contract" to a contract to perform the service,
repair, replacement, or maintenance of property installed at a specific residential
address; otherwise retains present law.
(2) Present law specifically exempts the following from present law: warranties,
maintenance agreements, and service contracts sold or offered for sale to persons
other than consumers.
Proposed law additionally exempts contracts sold or offered for sale on a single item
of property at the time of the sale of the property or within one year of the date of the
sale which guarantees the performance of the service, repair, replacement, or
maintenance of the property or guarantees to indemnify for the service, repair,
replacement, or maintenance of a single item of residential property.
(3)Present law defines a "provider" as a person who administers, issues, makes,
provides, sells, or offers to sell a home service contract or who is contractually
obligated to provide service under a service contract such as sellers, administrators,
and other intermediaries. HLS 10RS-1313 ORIGINAL
HB NO. 338
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are additions.
Proposed law limits a "provider" to a person who is contractually obligated to
provide the services or to provide indemnification under a home service contract,
eliminating sellers, administrators, and other intermediaries as such from the
definition.
(Amends R.S. 22:1806.2(4) and (7) and 1806.3(G); Adds R.S. 22:1806.1(B)(4))